FTSE 100 Live: Index Falls 0.6% as HSBC Drops Over 4% While Defence Stocks Advance

The FTSE 100 opened on a cautious note as geopolitical tensions and rising oil prices weighed on investor sentiment. The index declined 0.6% or 60.10 points to 10,293.67. The figures reflect a broader risk-off sentiment. 

The price of Brent crude went above $100 per barrel during Asian trading after the attacks on vessels in the Persian Gulf, before settling at $95.66-$97.50. The increase, in turn, pushed energy prices up.

Shares of BAE Systems rose 2.42% to £2,282 as expectations of spending on the defense sector increased. Babcock International also climbed 2.39% to £1,416, reflecting continued demand for defense and engineering services.

Mining giant Rio Tinto gained 1.12% to £6,867, supported by stronger commodity prices and investor interest. Meanwhile, Rentokil Initial advanced 1.54% to £474.50, and Legal & General edged up 0.91% to £243.20. Precious metals producer Fresnillo also moved higher by 0.82% to £3,684.

Banking and Healthcare Stocks Drag the Index

HSBC Holdings fell sharply by 4.15% to £1,220, while pharmaceutical giant AstraZeneca declined 0.80% to £14,368.

Spirax Group backed 0.63% to £7,075, and consumer goods company Reckitt Benckiser dropped 0.63% to £5,354. Diploma fell 0.78% to £5,110, and Pershing Square Holdings edged lower by 0.81% to £4,184.

Travel Sector Faces Demand Shock

Holiday operator, On The Beach, saw its shares fall down by around 9% after reporting a decline in bookings for destinations like Turkey, Greece, Cyprus, and Egypt. The company suspended its profit guidance for the year, citing uncertainty linked to the ongoing Middle East conflict. 

Airline and holiday provider easyJet fell £7 to £390.6.

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Corporate Developments 

TP ICAP has launched an £80 million share buyback programme as the group delivered record revenue growth in its latest annual results. 

The firm’s stock rose over 6% after the news. Revenue rose 6% to £2.4 billion from £2.2 billion, while its global broking arm saw a 10% rise in revenue to £1.3 billion. 

Profit before tax grew 7% to £230 million. The board proposed a final dividend per share of £11.6, with the total full-year dividend reaching £16.8, a 4% increase.

M&G reports a rise in inflows as traditional life business returns to growth after an increase in net inflows, driven by a return to growth in its Life business and Asset Management performance. 

The investment manager reported net inflows of £7.8 billion in its latest annual results, a swing from outflows of £1.9 billion the previous year, marking a near £10 billion year-on-year improvement. 

Profit before tax rose to £838 million from £837 million. Assets under management and administration hit £375.9 billion from £345.9 billion.